Universe Pharmaceuticals, a pharmaceutical manufacturer and distributor in China, has entered into a share purchase agreement to acquire 100 percent of the issued shares of Best Praise International, a company that owns five pharmaceutical patents in China, in a transaction valued at USD 10.751 million.

The acquisition will be completed through the issuance of 4,376,552 Class A ordinary shares of Universe Pharmaceuticals. The transaction is subject to customary closing conditions, has been approved by the company's board of directors and is expected to close during the third quarter of 2026.

According to the company, Best Praise's patent portfolio spans several pharmaceutical and healthcare segments, including age-related diseases, neurodegenerative disorders, cognitive health, cardiovascular therapies, antibacterial compounds and advanced drug delivery technologies. Universe Pharmaceuticals said the patents complement its existing focus on elderly healthcare and could support future research and development initiatives, co-development partnerships, licensing opportunities and commercialisation efforts.

Commenting on the acquisition, Gang Lai, Chief Executive Officer of Universe Pharmaceuticals, said the transaction reflects the company's strategy to strengthen its pharmaceutical capabilities by expanding its intellectual property portfolio in key therapeutic areas. He added that the acquisition is expected to broaden the company's product pipeline and create new opportunities for long-term growth.

Lai further noted that the acquisition would also enhance the company's position as a Nasdaq-listed public company by strengthening its asset base and supporting its long-term capital strategy, with the objective of creating greater value for shareholders.

Universe Pharmaceuticals said the proposed acquisition aligns with its long-term strategy of expanding its pharmaceutical platform around elderly healthcare, age-related conditions and other high-growth therapeutic segments.

The company also stated that the share purchase agreement has been filed with the US Securities and Exchange Commission (SEC) as an exhibit to a Form 6-K filing, and encouraged investors to review the relevant documents as they become available.

Headquartered in Ji'an, Jiangxi Province, Universe Pharmaceuticals manufactures, markets and distributes traditional Chinese medicine-derived products primarily aimed at improving the health and well-being of the ageing population in China.